The dollar rate against ten world currencies fell to its lowest level since 2018. The reason was the emergence of an effective vaccine against coronavirusreports Bloomberg .
Dollar Spot Index, compiled by the agency, monitors movement of the dollar against a basket of ten world currencies, including the euro, yen and yuan. The indicator fell by 0.2 percent, to the level of April 2018, after the announcement of the US authorities that vaccination against coronavirus could begin in the first half of December this year. The yield on 10-year Treasury bonds rose three basis points to 0.86 percent.
News of the coronavirus vaccine suggests that the global economy will begin to recover “sooner rather than later.” As a result, the dollar, which is a safe haven for investors during the crisis, will lose its attractiveness, said Rodrigo Catril, currency strategist at National Australia Bank.
Previously, Citigroup analysts have already predicted the dollar will collapse by 20 percent in 2021 year. The US currency will weaken if COVID-19 vaccination becomes widespread in the world, and the situation in the global economy and trade improves.